U-Swirl, Inc. Acquires Let's Yo! Yogurt
Expanding Company's Reach Into Northeastern U.S.
DURANGO, CO - (Marketwired - Apr 30, 2015) - U-Swirl, Inc. (OTCQB: SWRL) today announced that its wholly-owned subsidiary, U-SWIRL International, which operates and franchises self-serve frozen yogurt cafés, has acquired the business assets of Let's Yo!, LLC. The acquisition of all intellectual property and worldwide franchise and license rights includes the rights associated with 12 currently operating Let's Yo! Yogurt stores in New Jersey, Pennsylvania, Massachusetts, and Florida. While financial terms of the transaction were not disclosed, Let's Yo! will be entitled to an earn-out based on the royalties received over a 24-month earn out period.
Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF) owns a controlling interest in U-Swirl, Inc.
"The completion of this acquisition increases the size of U-Swirl's store base to a total of 259 units in 37 states and 4 foreign countries, and allows us to expand into the highly populated northeastern region of the United States," noted Alan Stribling, President of U-Swirl, Inc.
"We are pleased to welcome Let's Yo! to the U-Swirl family of frozen yogurt brands as we continue to expand our competitive footprint within the $6 billion away-from-home frozen desserts market. U-Swirl has experienced dramatic growth during the past 27 months and currently ranks as the fourth-largest self-serve frozen yogurt chain in the industry. The number of cafés in its network has increased 375 percent since January 2013, largely due to the acquisition of 8 self-serve frozen yogurt franchising companies."
"The self-serve frozen yogurt market is extremely fragmented, and we believe consolidation is necessary for the future success of the industry. U-Swirl intends to play an important role in this process as we pursue economies of scale through both organic growth and an aggressive acquisition program. In addition to our recent acquisitions of frozen yogurt chains, we are pursuing new store openings by franchisees under the U-Swirl, CherryBerry, Yogurtini, Let's Yo! and Fuzzy Peach brands. We expect 20 to 30 store openings under our current brands during Fiscal 2016," concluded Stribling.
About U-Swirl, Inc.
U-Swirl, Inc. is an operator and franchisor of self-serve frozen yogurt cafés that operate under the following names: U-SWIRL Frozen Yogurt, CherryBerry, Yogurtini, Fuzzy Peach, Aspen Leaf Yogurt, Yogli Mogli, Gracie Bleu, Let's Yo!, and Josie's Frozen Yogurt. The cafés offer frozen yogurt in up to 20 non-fat and low-fat flavors, including tart, traditional, and no-sugar-added options, along with fresh sorbet. Approximately 70 toppings such as fresh fruit, sauces, candies, and granola are available to customize each serving of yogurt to the customer's individual taste.
In January 2013, the Company acquired frozen yogurt café assets, franchise rights and certain other assets from Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF), primarily in exchange for certain warrants/options, notes payable, and a controlling ownership interest in the Company.
U-Swirl, Inc. is headquartered in Durango, Colorado, and its common stock trades on the OTCQB under the symbol "SWRL." As of April 30, 2015, the Company and its franchisees operated 259 self-serve frozen yogurt cafés in 37 states and 4 foreign countries.
About Rocky Mountain Chocolate Factory, Inc.
Rocky Mountain Chocolate Factory, Inc., headquartered in Durango, Colorado, is an international franchisor of gourmet retail chocolate stores and self-serve frozen yogurt cafés, and a manufacturer of an extensive line of premium chocolates and other confectionery products. As of April 30, 2015, the Company and its franchisees, licensees and majority-owned subsidiary (U-Swirl, Inc.) operated 609 stores and cafés in 41 states, Canada, Japan, South Korea, The United Arab Emirates, The Kingdom of Saudi Arabia, Pakistan and Turkey. The Company's common stock is listed on The Nasdaq Global Market under the symbol "RMCF." Additional information is available on the Internet at www.rmcf.com.
Certain statements in this press release are "forward-looking statements." These statements involve risks and uncertainties, and the Company undertakes no obligation to update any forward-looking information. Risks and uncertainties that could cause cash flows to decrease or actual results to differ materially include, without limitation, seasonality, consumer interest in the Company's products, general economic conditions, consumer and retail trends, costs and availability of raw materials, competition, market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. Readers are referred to the Company's periodic reports filed with the SEC, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The information contained in this press release is a statement of the Company's present intentions, beliefs or expectations and is based upon, among other things, the existing business environment, industry conditions, market conditions and prices, the economy in general and the Company's assumptions. The Company may change its intentions, beliefs or expectations at any time and without notice, based upon any changes in such factors, in its assumptions or otherwise, and it undertakes no obligation to revise or update publicly any forward-looking statements for any reason. The cautionary statements contained or referred to in this press release should be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on its behalf may issue.
SOURCE U-Swirl, Inc.
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